Star Ledger article regarding reduction in commuter tax benefit as of 1/1/12

In what could amount to a hidden fare hike for more than 100,000 mass transit riders from New Jersey, the federal commuter tax benefit is being reduced from $230 to $125 a month beginning Sunday.

A commuter earning $50,000 a year and spending $230 per month on transit would pay more than $400 extra in 2012 through the rollback.

"For most, the bad economy has led to small or zero wage increases in the working commuter’s paycheck," said Karl Zielaznicki, an NJ Transit rider who commutes from Aberdeen to Manhattan and pays $278 for a monthly bus pass. "By reducing the amount of the credit, it is nothing but a mindless tax increase on the workers who are keeping our economy growing."

For the past two years, workers have been able to set aside $230 a month in tax-free dollars for commuting. Transit benefits go back about a quarter century, but commuters in 2009 began enjoying a higher benefit as part of the federal stimulus program to give people incentive to use mass transit and put dollars back into the pockets of commuters.

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